*Risks:* There are risks such as unexpected renovation costs, longer holding periods, and market downturns affecting the sale price.

Does anyone have experience in this market, or with this cost-segregation to write off income technique? 

The rental market is still extremely hot and prices are high with inventory low, but I have still been managing to cash flow on the new purchases.     

We have used Yardi that turned into Breeze (yuk) and now looking at Real Page that looks great but no cost info yet. 

Each option has its pros and cons, and I'm hoping to get some insights from this community to make a more informed decision.Option 1: Building an ADUPros:Increased Property Value: An ADU can significantly increase the value of my primary residence.Control and Proximity: I can closely manage and maintain the property since it's on my land.Potential for Higher Rent: ADUs in bay area can fetch a good rental price.Flexible Use: ADUs can serve multiple purposes – home office, guest house, or rental unit.No Additional Land Purchase: Utilizing existing property means no extra cost for land acquisition.Foundation improvements: I will get an upgrade for my foundation which increase house stability.

We clean it ourselves as well to keep an eye on it and keep costs down. 

Seems SUPER low.

The reason you avoid the owner financing when you don’t own is=t is the bank can call it due.

Without steady income, the odds you can successfully make that transition are very low. 

Add in HOA and utilities and misc costs you are probably at $3500 per month to operate, which is $42000 per year.